Question
6) ArundelCompany uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of: Dollar Value
6) ArundelCompany uses aging to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
Dollar Value
Age of Account
Estimated Collectible
$260,000
< 30 days old
99.0%
65,000
30 to 60 days old
94.0%
30,000
61 to 120 days old
79.5%
7,000
> 120 days old
13.0%
The current unadjusted Allowance for UncollectibleAccounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in theAllowance for Doubtful Accounts?Round to nearest whole dollar.
7)ArundelCompany uses percentage of sales to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $865,000 in credit sales.Arundel assumes that 2.0% of sales will eventually be uncollectible.before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 6,000.What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?
8) Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:
Date
Activity
Quantity
Unit Price
5/1
Beginning Inventory
175
$11.00
5/5
Purchase
200
$12.50
5/10
Sales
300
$25
5/15
Purchase
200
$13.50
5/20
Sales
250
$28
5/25
Purchase
150
$13.00
Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May.Round to the nearest cent.
9)Adelphi Company purchased a machine on January 1, 2017, for $50,000.The machine was estimated to have a service life of ten years with an estimated residual value of $5,000.Adelphi sold the machine on January 1, 2021 for $24,000. Adelphi uses the double declining method for depreciation. Using this information, how much isthegain or (loss) for the equipment sale entry made on January 1, 2021.Enter a loss as a negative number.
10) Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate.Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.0% and the state unemployment tax rate is 4.0%. Barbara's wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes.Barbara earns $17 per hour and worked 50 hours for the week ended January 13 , 2019.Baltimore will withhold $220 federal income taxes. Use this information to determine the totalpayroll tax expense for Baltimore Company as related to Barbara's earnings.(Round to the closest cent)
*I am not sure how to find the answer, I have looked through my text and have not found anything with an explanation. Thank you
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